WHAT IS BUYER REPRESENTATION



WHAT IS BUYER REPRESENTATION?

HOW DOES IT HELP ME?

A Buyer’s Agent signs a contract with YOU, the buyer. You become the agent’s client. They owe their fiduciary responsibility and loyalty to YOU. They must put your interest first and negotiate for the best price and terms for you. A Buyer’s Agent has the tools and can access the information to help you make a wise buying decision. And, since it’s their job to study the market, they can make sure you don’t overpay for the home you want in the time frame that you wish to buy in. They’re on your side, so they can help you to formulate an effective offer.

And guess what? Having your own representation doesn’t have to cost you a penny more than having someone who works for the seller. Ninety-nine times out of a hundred, the Buyer’s Agent’s fee comes out of the proceeds of the sale. And if it doesn’t, they can help you structure your offer so that you come out whole. You have the right to your own representation – Don’t let anyone tell you otherwise!

Remember, when you’re sick, you consult a doctor. When you need legal advice, you consult an attorney. So when you’re looking to purchase your largest possession, don’t go it alone! Work with someone who will put your needs first!

QUESTIONS & ANSWERS

(At least the most common ones!)

HOW DOES IT WORK?

In every real estate transaction, there are two sides: the seller’s side and the buyer’s side. As an agent, I always represent someone’s interest. That someone is the party with whom there is a contract. So, unless I have a contract with you, the buyer, no matter how friendly we become, my loyalty and fiduciary responsibilities must be to the only party with whom there is a contract – THE SELLER!

As a Buyer’s Agent, I sign a contract with you, the buyer. I can then put YOUR interest first, negotiate on your behalf, and use my best efforts in helping you find the home you want at the price you’re willing to pay.

WHAT ARE THE ADVANTAGES TO THE BUYER?

With either type of agency, I am required to treat you with honesty and fairness, to assist you in selecting a property and to disclose to you any known material defects in properties that I show you. But ethically, as the seller’s sub-agent, I must tell you, the buyer, not to say anything to me that you would not say directly to the seller. I am limited in the service that I can provide to you due to my contractual loyalty to the seller. However, as your Buyer’s Agent, I can give you my loyalty and confidentiality. I am working in YOUR interest. As your agent, you can totally level with me. I become your negotiating and facilitating teammate throughout the entire process.

WHAT ARE THE DISADVANTAGES TO THE BUYER?

Arguably, none, but there is a contractual responsibility. As your agent, I am working in YOUR interest. But just as a seller sells through his/her agent even if he finds his/her own buyer, you as a buyer client must buy your home through me during the time the contract covers, even if you find a property on your own.

IS IT IN A SELLER’S INTEREST TO WORK WITH BUYER AGENTS?

Absolutely! Working with Buyer Agents provides the home seller with maximum exposure of their home, highly motivated and qualified buyers, and no liability for a sub-agent’s actions or misrepresentations to the buyer.

WILL IT COST ME EXTRA TO HAVE MY OWN REPRESENTATION AS A BUYER?

I never say never, but for the most part, NO! Although signing a buyer contract makes you, the buyer, responsible for my fee, ninety-nine times out of a hundred, this fee (as well as that of the listing agent) comes out of the proceeds of the sale. And, keep in mind that I can advise you on how to structure your offer in the event that the seller is unwilling to allow the proceeds to be used to pay my fee. Rest assured that when you work with me, you will not be caught unaware or have to pay twice for the same service.

WHAT IS A DUAL AGENT?

When I, as a Buyer’s Agent, show a RE/MAX United listing, I am acting as a Dual Agent. This is because my company has a fiduciary responsibility to you, the buyer, and also to the seller. In this scenario, it is my responsibility to “encourage and effect communication and negotiation between seller and buyer.” The end result should be to create a win-win situation for you and the other party. At no time am I allowed to share with the other party confidential information.

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